While each crash was very different, on average stocks rose in the first half of each graph (see black lines).
There’s a potential confounder: If crashes are defined as local low points on the graph, then immediately afterwards the graph can only go up.
Actually I defined a crash as a fall of 20% or more in 8 weeks or less. So some crashes keep falling (e.g. 1973 in UK).
There’s a potential confounder: If crashes are defined as local low points on the graph, then immediately afterwards the graph can only go up.
Actually I defined a crash as a fall of 20% or more in 8 weeks or less. So some crashes keep falling (e.g. 1973 in UK).